- Lenovo announces plans to establish its new MEA headquarters in Saudi Arabia
- It will manufacture “millions” of PCs and servers in a new plant
- Financial performance is strong with Lenovo’s revenue increasing
Lenovo and Saudi Public Investment Fund company Alat have confirmed the completion of their $2 billion investment to “accelerate [Lenovo’s] continuous transformation” by “[enhancing] its global presence.”
More specifically, Lenovo will invest in supply chain, technology and manufacturing in Saudi Arabia in hopes of generating 1,000 new jobs in the region.
As part of the deal, the Hong Kong IT giant will build a new Middle East and Africa (MEA) headquarters in Riyadh, Saudi Arabia.
Lenovo bets big on Saudi Arabia
Part of increasing its presence in the Middle East and Africa will include building a new manufacturing plant in Saudi Arabia to make PCs and servers. The company expects to build millions of devices a year, with production beginning in 2026.
In its commitment to the Kingdom of Saudi Arabia (KSA), Lenovo will also use local R&D teams to create “fully comprehensive ‘made in Saudi’ products.”
Lenovo CEO Yuanqing Yang commented: “Through this powerful collaboration and strategic investment, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalizing on the incredible growth momentum in KSA and the MEA region in general.
Alat CEO Amit Midha added: “With the establishment of a regional headquarters in Riyadh and a world-class manufacturing hub, powered by clean energy, in the Kingdom of Saudi Arabia, we look forward to the Lenovo team boosting its potential throughout the MEA region. .”
In its most recent financial report, Lenovo confirmed that its Intelligent Devices Group (IDG), which comprises PCs and tablets, among other devices, posted a 15% revenue increase, beating expectations. Its Infrastructure Solutions Group (ISG) revenue saw an even greater year-over-year increase of 65% thanks to continued support for AI.
